What Did I Miss?
Sell in May and Go Away Was A Bad Idea in 2018.
If you sold out of the market Last summer, you missed a 10% increase.
“Sell in May and go away” is an old Wall Street saying that suggests investors to sell their stocks during the summer to avoid a seasonal decline in the stock market. An investor selling their stocks in May would then buy stocks again at the end of the summer (some suggest November) because the summer time-period shows significantly less growth in the market than the other times of the year. Or so the story goes.
Where did this “Sell in May and go away” advice originate? Not on Wall Street, but rather in London’s financial district. The original saying, “Sell in May and go away, come back on St. Leger’s Day” refers to a horse race. That’s right, a horse race. The St. Leger Stakes is one of England’s greatest horse race and is run in late September. London traders would sell their shares, enjoy their summer, and return to the market after the St. Leger race.